Question by ░♥░: How many properties can a borrower own when obtaining an FHA mortgage?
I know that only one FHA mortgage is allowed per person. But can that person own an investment property and get a refinance FHA on their primary?
Best answer:
Answer by golferwhoworks
yes as long as the investment is not FHA insured
Give your answer to this question below!
You can not have a 5th mortgage. You are well under the limit.
Do you understand that FHA loans are the worst loans? I don’t hate FHA (i’ve used them often) but they are for people with bad credit. Avoid them and get a conventional loan. /
According to the HUD Handbook 4155 (FHA handbook) there are certain situations where a homeowner can have more than one FHA mortgage. However those situations typically deal with seasonal employment and are few and far between.
A person can absolutely refinance there primary residence with an FHA mortgage even if they own an investment property. Additional information may be requested to make sure there is no occupancy fraud going on.
In the current mortgage market an FHA mortgage is a great option for a majority of homeowners either looking to purchase or looking to refinance. Numerous restrictions have been placed on conventional loans (Fannie Mae & Freddie Mac) which may increase the interest rate and the approval guidelines.
If you are purchasing a home or refinancing a home in the summer of 2008 and you have less than 20% equity and FHA mortgage will be your best bet for 9 out of 10 homeowners. With the current state of home values a lot of people are finding that they have minimal equity.
With an FHA loan an individual can refinance up to 97.75% (In most areas). This is not currently possible with conventional financing (in most areas).